Considering starting up a PC business...

[gregor7777]

Hey All,

I was throwing around the idea of building and selling custom PC's for a specific niche market, but it's just an idea at this point.

I was wondering, is there anyone in a related business that could clue me in on a supplier for high end parts (CPU's, video cards, MBs RAM and such)? I only have expierence with the usuals like NewEgg for putting a system together here and there, but I was thinking there must be a place for a proper business to get better prices.

TIA

 

[DurocShark]

I think everybody has had that idea at one point or another.

The high water mark for small shops was the mid 90's. Good luck if you decide to do so.

 

[meltdown75]

I remember when I had that idea.

Here's to your success! :beer:

 

[gregor7777]

Originally posted by: DurocShark
I think everybody has had that idea at one point or another.

The high water mark for small shops was the mid 90's. Good luck if you decide to do so.

Yeah, I've thought about it for awhile (like I'm sure many here have) and I'm thinking that if I target a very specific market I might be able to turn a decent profit.

Would obviously depend on a huge amount of factors...

 

[BigJ]

You're going to have a really tough time being successful.

 

[gregor7777]

Originally posted by: BigJ
You're going to have a really tough time being successful.

I realize...I would keep my day job...lol

 

[TankGuys]

Starting out as a small business building custom PC's, you'll get cheaper prices buying from Newegg than you will from any distributors. You just won't have the volume to get any pricing leverage.

 

[Googer]

Originally posted by: BigJ
You're going to have a really tough time being successful.

Good luck competing with DELL.

 

[waggy]

hahahahahahahah good luck.

You might make enough to cover cost but to tell the truth i doubt it.

 

[gregor7777]

Who said anything about competing with Dell? Dell doesn't offer a few of the things I was thinking about offering.

Thanks for the advice tankguys, I would definetely be starting out small to test the market for what I might offer. Newegg''s prices seem low enough on the hardware...that's not where I would be making much money anyhow.

Any other ideas welcome.

 

[stuman19]

When I did it we used Chipco to build the computers and warranty them and then we used ingram micro for parts and stuff.

 

[dartworth]

Lots of things to think about...this is just a few


Do you have a business plan?

Do you have an exit strategy?

Do you have a company name?

Have you formed an LLC or incorporated?

Do you have a storefront?

 

[Goosemaster]

Originally posted by: gregor7777
Who said anything about competing with Dell? Dell doesn't offer a few of the things I was thinking about offering.

Thanks for the advice tankguys, I would definetely be starting out small to test the market for what I might offer. Newegg''s prices seem low enough on the hardware...that's not where I would be making much money anyhow.

Any other ideas welcome.

um.....yeah they do

Having bought alienware out, they can pretty much do whatever you want.

Be it a quad sli machine or a blade with matching red EMC's

Basically, as Durocshark pointed out, that market is tapped out, and while chances are that you might enjoy a modicum of business, overall, it will suck.

<---used to work at a busy shop that tried to go "high-end" and knows from experience that it is a rough market

 

[EyeMWing]

I did it very, very successfully up until about this time last year.

Do yourself a favor and DON'T DO IT! Seriously. Don't. I'm out of the business and I still have 400 active warranties floating around out there, somewhere. People are assholes. They'll treat you like sh!t.

Competing with Dell and the other big names is very easy - it turns out that only the high end IT people seem to have any sort of brand loyalty towards Dell (which is odd, really). Sell one good product to one person, and they'll sell two more for you. That's prettymuch the way it plays out. Word of mouth about ridiculously performing systems at "low prices" is rather effective.

Don't do it. It simply isn't worth the money (and the money was VERY, VERY good - $200 margin on a machine, at least 1 machine per day)

 

[gregor7777]

Originally posted by: stuman19
When I did it we used Chipco to build the computers and warranty them and then we used ingram micro for parts and stuff.

Nice, I'll take a look at those options.

@dartworth - Just in the plausability stage at this point, so finding a distrib. to get an idea on possibles costs in that area comes long before things such as getting a company name.

 

[Goosemaster]

Originally posted by: EyeMWing
I did it very, very successfully up until about this time last year.

Do yourself a favor and DON'T DO IT! Seriously. Don't. I'm out of the business and I still have 400 active warranties floating around out there, somewhere. People are assholes. They'll treat you like sh!t.

Competing with Dell and the other big names is very easy - it turns out that only the high end IT people seem to have any sort of brand loyalty towards Dell (which is odd, really). Sell one good product to one person, and they'll sell two more for you. That's prettymuch the way it plays out. Word of mouth about ridiculously performing systems at "low prices" is rather effective.

Don't do it. It simply isn't worth the money (and the money was VERY, VERY good - $200 margin on a machine, at least 1 machine per day)

:thumbsup:


Or repair marjins were monstrous, but the return service calls about basically imcopetance on the part of the user and ignorance to bat, threatened the business' reputation daily.

Don't ever disagree with someone that says that you will come across assholes, because, frankly, 70% of your clients will treat you like crap...

 

[Goosemaster]

Originally posted by: gregor7777

Originally posted by: stuman19
When I did it we used Chipco to build the computers and warranty them and then we used ingram micro for parts and stuff.

Nice, I'll take a look at those options.

@dartworth - Just in the plausability stage at this point, so finding a distrib. to get an idea on possibles costs in that area comes long before things such as getting a company name.

For the msot part use pricewatch once you find a reliable dealer...

 

[harrkev]

Originally posted by: EyeMWing
I did it very, very successfully up until about this time last year.

Do yourself a favor and DON'T DO IT! Seriously. Don't. I'm out of the business and I still have 400 active warranties floating around out there, somewhere. People are assholes. They'll treat you like sh!t.

Competing with Dell and the other big names is very easy - it turns out that only the high end IT people seem to have any sort of brand loyalty towards Dell (which is odd, really). Sell one good product to one person, and they'll sell two more for you. That's prettymuch the way it plays out. Word of mouth about ridiculously performing systems at "low prices" is rather effective.

Don't do it. It simply isn't worth the money (and the money was VERY, VERY good - $200 margin on a machine, at least 1 machine per day)

So, you are saying that you can make good money, people are not "brand loyal" to the competition, and you can make $200 profit per day. Yet you stress "Don't do it." So, other than warranty work, what's the down side? Or are you just afraid of the competition?

 

[gregor7777]

Originally posted by: Goosemaster

Originally posted by: gregor7777
Who said anything about competing with Dell? Dell doesn't offer a few of the things I was thinking about offering.

Thanks for the advice tankguys, I would definetely be starting out small to test the market for what I might offer. Newegg''s prices seem low enough on the hardware...that's not where I would be making much money anyhow.

Any other ideas welcome.

um.....yeah they do

Having bought alienware out, they can pretty much do whatever you want.

Be it a quad sli machine or a blade with matching red EMC's

Basically, as Durocshark pointed out, that market is tapped out, and while chances are that you might enjoy a modicum of business, overall, it will suck.

<---used to work at a busy shop that tried to go "high-end" and knows from experience that it is a rough market

OK, thanks to everyone with their comments, but really, if there was a market for computers with keyboards that were shaped like pineapples and smelled as such, and I happen to make them, I would have an advantage over Dell who doesn't have them and would be slow to react to such a niche market.

My point is, I have an idea for a different PC use that I think is rather unique. I'm not going to make you're normal PC with normal PC functions in mind, wouldn't compete with Dell or any other manufacturer for that matter, so if we could please stick to the issue of finding a good price on PC components I would really appreciate it.

Again, thanks to everyone so far for the advice.

 

[JS80]

Economies of scale? Customer Service?

/thread

 

[thebigdude]

I worked a summer job once at a place that got AOpen stuff really cheap. I don't know how they got it though.

 

[Descartes]

Originally posted by: EyeMWing
I did it very, very successfully up until about this time last year.

Do yourself a favor and DON'T DO IT! Seriously. Don't. I'm out of the business and I still have 400 active warranties floating around out there, somewhere. People are assholes. They'll treat you like sh!t.

Competing with Dell and the other big names is very easy - it turns out that only the high end IT people seem to have any sort of brand loyalty towards Dell (which is odd, really). Sell one good product to one person, and they'll sell two more for you. That's prettymuch the way it plays out. Word of mouth about ridiculously performing systems at "low prices" is rather effective.

Don't do it. It simply isn't worth the money (and the money was VERY, VERY good - $200 margin on a machine, at least 1 machine per day)

$200 a day might be nice for a teenager, but it's barely even a decent income. There are a lot of other things you can do to make the same or more with a lot less effort, and even one hour or two of technical support on any of those machines greatly reduces that margin.

Not trying to put you down or anything; just pointing out that it's not VERY, VERY good; rather, ok.

 

[waggy]

Originally posted by: Descartes

Originally posted by: EyeMWing
I did it very, very successfully up until about this time last year.

Do yourself a favor and DON'T DO IT! Seriously. Don't. I'm out of the business and I still have 400 active warranties floating around out there, somewhere. People are assholes. They'll treat you like sh!t.

Competing with Dell and the other big names is very easy - it turns out that only the high end IT people seem to have any sort of brand loyalty towards Dell (which is odd, really). Sell one good product to one person, and they'll sell two more for you. That's prettymuch the way it plays out. Word of mouth about ridiculously performing systems at "low prices" is rather effective.

Don't do it. It simply isn't worth the money (and the money was VERY, VERY good - $200 margin on a machine, at least 1 machine per day)

$200 a day might be nice for a teenager, but it's barely even a decent income. There are a lot of other things you can do to make the same or more with a lot less effort, and even one hour or two of technical support on any of those machines greatly reduces that margin.

Not trying to put you down or anything; just pointing out that it's not VERY, VERY good; rather, ok.

are you insane? $200 a day is what $52K a year. tha tis not decent?

thats not bad actually. good amount when you are your own boss.


Edit: ok i agree it is not decent if you live in LA or something. but hell $52k a year in most places is good.

 

[raincityboy]

I build and service custom PCs for a specific market.
I just use Newegg for my parts.
Luckily the few other company's that are in the same market have set their prices very high.

 

[gregor7777]

Originally posted by: waggy

Originally posted by: Descartes

Originally posted by: EyeMWing
I did it very, very successfully up until about this time last year.

Do yourself a favor and DON'T DO IT! Seriously. Don't. I'm out of the business and I still have 400 active warranties floating around out there, somewhere. People are assholes. They'll treat you like sh!t.

Competing with Dell and the other big names is very easy - it turns out that only the high end IT people seem to have any sort of brand loyalty towards Dell (which is odd, really). Sell one good product to one person, and they'll sell two more for you. That's prettymuch the way it plays out. Word of mouth about ridiculously performing systems at "low prices" is rather effective.

Don't do it. It simply isn't worth the money (and the money was VERY, VERY good - $200 margin on a machine, at least 1 machine per day)

$200 a day might be nice for a teenager, but it's barely even a decent income. There are a lot of other things you can do to make the same or more with a lot less effort, and even one hour or two of technical support on any of those machines greatly reduces that margin.

Not trying to put you down or anything; just pointing out that it's not VERY, VERY good; rather, ok.

are you insane? $200 a day is what $52K a year. tha tis not decent?

thats not bad actually. good amount when you are your own boss.


Edit: ok i agree it is not decent if you live in LA or something. but hell $52k a year in most places is good.

Yes, but it that's just the profit on the parts and software, one still has totake into consideration rent or hosting fees, utilities, labor, warranty, taxes, liscensing and a whole host of other expenses that could acount for a goodly chunk of the 52,000 p/year.